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The Taliban has effectively banned cryptocurrency trading across Afghanistan and threatened to prosecute traders and related businesses, Bitcoin News reported. More than 20 crypto exchange shops in Herat were shut down and at least 13 traders were arrested.
Monthly crypto inflows then plunged to under $80,000 from a peak of more than $150 million. Bitcoin and stablecoins had served as important tools for savings and remittances after Afghanistan became largely isolated from the international financial system. The Taliban classified digital assets as fraudulent and stressed crypto speculation is akin to gambling under Islamic law.